Cigna to increase stake to 49% in TTK JV

MUMBAI: CignaTTK Health Insurance on Wednesday filed an application with the insurance regulator to increase Cigna’s stake from 26% to 49%.

Following the transaction, TTK will own 51% stake. TTK is in the process of selling its stake partially or completely in the business. The company has a share capital of Rs 250 crore, which will expand to Rs 350 crore after this round.

“Cigna TTK will continue to strengthen its market position in India by further growing our distribution network through expansion and new alliances, focusing on product and service innovation and enhancing our digital and technological capabilities while keeping the customer at the centre of everything we do,” said Cigna TTK Health Insurance managing director Sandeep Patel. “We look forward to continuing our journey to improve the health, well-being and sense of security of the people we serve.” The standalone health insurance company has more than 300,000 customers in India, with a network of 15 branches and presence in 6,000 locations through its points-of-sale network.

Cigna TTK Health Insurance, the joint venture between global health services firm Cigna and TTK, launched operations in February 2014. It had a market share of 0.17% at the end of March 31, 2017.

The company recorded 54% growth in premium income to Rs 222 crore in 2016-17. It is going through initial capital burn as it is investing in technology and building infrastructure.